OPINION: One step towards dignity

The 81 senators, representing the 27 units of the Federation, 16 political parties, including two former presidents of the Republic, one current and two former presidents of the Senate, two likely candidates for the Presidency, 20 ex-governors and 18 ex-mayors, have signed a letter to president Dilma Rousseff, handed in by me on October 25th, with a proposal: she should appoint a working group with the purpose of paving the way for the institution, step by step, starting with those most in need, of the Citizenship Basic Income (CBI), according to Law No. 10.835/2004, approved by all political parties in the Brazilian National Congress. It is the first country in the world where the parliament has approved a law to that effect.

On October 30th, in the Museum of the Republic, in Brasilia, there was a ceremony to commemorate the tenth anniversary of the Bolsa Família Program implementation, which has crucially contributed to the eradication of extreme poverty and to the reduction of inequality in Brazil. This program can be seen as a step towards the CBI.

Next January 8th, the law establishing the CBI will celebrate its tenth anniversary. It is important, therefore, that people who have contributed to the study of income transfer programs can collaborate for this purpose, such as Professor Paul Singer, Secretary of the Solidarity Economy of the Ministry of Labor and Employment since 2003.

Professor Singer will be able to work in close cooperation with ministers Tereza Campello (Social Development), Miriam Belchior (Planning) and Marcelo Neri (Strategic Affairs) and with Ana Maria Medeiros da Fonseca, first Executive Secretary of the Bolsa Família – people who have contributed to its creation and to the formulation of policies in the area.

International experts may also be invited. One of them could be Professor Philippe Van Parijs, who founded the “Basic Income Earth Network” and follows the development of international experiences of implementing the CBI in the European Union, India, Iran, Namibia, Alaska, Switzerland, and other countries. The pioneer 30-year experience in Alaska has made it the most equal of American States.

The proposal, enthusiastically signed by each and every senator, including the opposition leaders and presidential candidates, is consistent with what has been formulated by some 300 scholars from Brazil and from abroad, who have recently participated in the International Conference of the Center for Psychopathology and Public Policy, at the University of São Paulo, on Democratic Inventions: Constructions of Happiness, and who have also signed a letter to president Dilma with the same purpose. Professor Marilena Chaui was one of the most enthusiastic subscribers.

We have had great achievements in the Workers Party’s last ten years of government, featuring the improvement of the disadvantaged populations’ living conditions. The 81 senators’ voices will allow the president to take a leap and achieve her goal of eradicating extreme poverty, building a fair nation, strengthening women’s safety and providing dignity to all Brazilians.

OPINION: A Three-Step Proposal to Get to a Basic Income For All Brazilians

Marina P. Nóbrega – for the Municipal Council for the Citizen’s Basic Income, Santo Antonio do Pinhal, SP, Brazil

Humanity has to rescue the human solidarity that used to pervade tribal societies where wealthy was evenly shared. In our days money has to be used to that effect as great social thinkers have been preaching. In Brazil, President Lula´s law 10,835 from 2004 says that “A monthly benefit enough for the basic needs of a person will be paid equally to all.  This basic income is to be instated by steps, taking care first of the most in need.” This law is still unregulated but the government, immediately after, created the successful Bolsa Familia (BF) program. Law 10,835 is unique in the world and needs to be regulated as to the steps to be taken to gradually universalize the benefit.

The Municipal Council for the Citizen’s Basic Income in the city of Santo Antonio do Pinhal has such a proposal.

Our initial proposal was to have a municipal pilot project fueled by a percentage of gross earnings from private businesses and private donations plus 6% per year from the city’s revenue. The idea was to create a fund to operate as the Alaska scheme. The Council analyzed carefully this proposal in the light of basic income principles and the practical attempts made to collect funds. We came to the conclusion that the Alaska way is impossible to succeed in our conditions besides we also do not accept that the annual and variable dividends represent the idea we have about a basic income.

Instead, we suggest that the path to Basic Income should go through 3 stages. We do not think this to be the best way for other countries but, considering Brazil’s situation, with almost 50 million under the support of the conditional BF (average of US$ 17.50 per person), we have a stepping stone to approach the final goal of including all in basic income. The steps suggested are:

Step 1 – Start the unconditional and universal basic income with all newborns in Brazil in the near future. The Council suggested that the caring parent receives US$ 35.00 per month and the same amount is deposited monthly in a savings account in name of the child, to be withdraw when he/she reaches legal age. This will be particularly valuable in two ways: it is financially viable, progressive and amenable to planning, will carry a strong symbolic value benefitting the children of the nation and pointing to a better future. This move will have a crucial educational value by giving people of all social classes time to understand the revolutionary value of a minimum income independent of work.

Step 2 – Next we suggest remove all conditionalities linked to the Bolsa Familia program. This will require that the funds for the almost 50 million involved (about 25% of our population) be doubled. We can predict that the result will be impressive economically and socially. The humiliation of means test, the complexity of the paperwork that opens the opportunity for political manipulation will vanish. The economy will benefit, and the results will be boosted by the possibility of taking regular jobs or opening a small business, both banned under the present conditionalities. These people will be freed from the known “poverty trap” created by the requirements for admission.

Step 3 – The Bolsa Familia bureaucracy can now be directed to monitor people that are still economically vulnerable but outside the government lists or people that fall into the “precariat”. They and their dependents should immediately receive the unconditional basic income.

PS: The Council can be reached by sending mail to maripnobrega@gmail.com

Phones: 55 12 9777 9115  or 55 12 3911 3839

OPINION: The Basic Income Idea Spreads in the American Continents

A very positive sign that the Unconditional Basic Income proposal is advancing in the Americas is that a “Ley Marco de La Renta Básica”, “Draft Basic Income Framework Law”, was approved by the General Session of the Parlatino, Parlamento Latino Americano [Latin American Parliament], held last November 30th, 2012, in Panama City. After three preparatory meetings of the Commission of Economic Affairs of the Parlatino in Aruba, Curacao and Buenos Aires, with the cooperation of the Representatives Rodrigo Cabezas Morales, from Venezuela, President of the Commission, Maria Soledad Vela Cheroni, from Ecuador, Ricardo Berois, from Uruguay, and myself, during which the proposal was discussed, it was finally presented as a model for all the parliaments of all 23 nations of Latin America and the Caribbean.

This Ley Marco de la Renta Basica takes into account what is considered in the Brazilian Law, approved by the National Congress, by all parties, both in the Federal Senate, in 2002, and in the Chamber of Deputies, in 2003, and then sanctioned by President Luiz Inácio Lula da Silva in January 8th, 2004: The Citizen’s Basic Income will be introduced step by step, under the Executive criteria, taken into account first those most in need, such as the Bolsa Família Program does.

The Brazilian population in 2013 is around 194 million inhabitants. According to the Bolsa Família Program, all families with a monthly income per capita up to R$ 140.00 can benefit from the program with the following rules:

If the per capita family income is below R$70.00 per month, the initial basic benefit to the family is R$ 70.00. In addition, for all families with income per capita below R$ 140.00 per month, they have the right to receive R$ 32.00, R$ 64.00, R$ 96,00, R$ 128.00 or R$ 160.00 if the family has, respectively, one, two, three, four or more children up to the age 15 years and 11 months, plus R$ 38.00 or R$ 76.00 if the family has one or two adolescents, respectively, from 16 to 18 years of age.

There are some conditionalities: if the mother is pregnant, she must do the pre-natal health exam in the Public Health System of the region where she lives. The children up to six years of age must be taken by their parents to the Health System to take the necessary vaccines, according to the Health Ministry’s calendar. The children aged seven to 15 years and eleven months must be in school at least 85% of the classes. The adolescents aged 16 to 18 must attend at least 75% of the classes in school.

In January 2013 there were 18.491.302 families in Brazil with per capita income up to R$ 140.00 per month that, therefore, would be allowed to get the benefits of the Bolsa Família Program. By March 2013, there were13.872.243 families enrolled in the Bolsa Família Program that is 75% of those who, by law, are entitled to enroll in the program. Since there are around 3.5 people in each family among the relatively poor, we may say that almost one fourth of the Brazilian population of 194 million today benefits from the Bolsa Família Program.

Since June 2011, President Dilma Rousseff has launched the Active Search process through which all levels of government and social organizations of all kinds should help in finding those families with the right to have the Bolsa Família benefit and that have not been identified and enrolled in the program yet. Since March, 2013, all families enrolled in the Bolsa Família program with at least one child up to 15 years and eleven months of age whose monthly family income, plus the Bolsa Família benefits, does not reach the sufficient to provide at least R$ 70.00 per capita, the Federal Government, through the so called Brasil Carinhoso or Brazil Care Program, will provide what is needed to complete the monthly R$ 70.00 per capita to the family. Through this measure the government is trying to guarantee that all Brazilian families, from now on, have at least R$ 70.00 per capita per month.

One day, I hope in the near future, we will be able to make the transition from the Bolsa Família Program towards the Citizen’s Basic Income, not only in Brazil, but in all countries of the three continents of the Americas.

Link to the Draft Basic Income Framework Law approved by the Parlatino:
https://www.usbig.net/papers/Palestra%20USBIG2013_English.doc

BRAZIL: Senator Suplicy reaffirms that a BI is attainable now

In a recent interview, Senator Eduardo Suplicy reiterated the case for a basic income (BI) in Brazil, underlining that is not only desirable but something that is practically attainable now. At present, the BI in Brazil still exists in a truncated form as the Bolsa Familia conditional cash transfer (covering 25% of the population). Suplicy was the architect of the 2004 law that established the BI in Brazil. This law was charged with introducing the BI there gradually, with the Bolsa Familia being the first step in the process. Suplicy argues that that the time has come for the Bolsa Familia to be extended to cover all Brazilians. He calculates that covering all Brazilians with a modest BI of USD$35 a month would require an eight-fold increase in the budget of USD$80 billion (4% of GDP) currently assigned to the Bolsa Familia. In spite of such fiscal challenges, he believes this is possible given the prosperity the world is seeing and the potential of natural resources as an additional funding source.

For more on this issue see:

Nagarajan, Rema, “Brazil: Imagine a World Free of Hunger and Need,” the Times of India, September 6, 2012.
https://pulitzercenter.org/reporting/brazil-economy-dreaming-world-free-hunger-and-need-Eduardo-Suplicy